AT&T Plans 2014 Takeover of Vodafone

It had discussed a possible bid with Verizon earlier this year

Sources tell Bloomberg that AT&T (T) is contemplating a takeover bid for Vodafone (VOD). The companies are not in formal talks over any bid, but AT&T is said to be developing plans to leverage Vodafone’s existing assets to accelerate the penetration of mobile broadband among European consumers. AT&T is also reportedly determining which Vodafone assets it will sell after the acquisition and which it would keep.

A merger between AT&T and Vodafone would required regulatory approval on both sides of the Atlantic and promises to be a highly complex transaction. If it does go ahead, the combined company would be the world’s biggest telecommunications company, in terms of revenue. It would have a market capitalization of more than $250 billion.

Shares of AT&T and Vodafone both slipped slightly in Friday afternoon trading.